Rupiah in freefall against US dollar
SINGAPORE: The rupiah fell to its lowest level in 41/2 years versus the dollar yesterday as the increasing likelihood of a United States government shutdown prompted investors to unload risky assets and currencies.
The rupiah's indicative prices fell to as low as 11,660 against the dollar, according to Thomson Reuters data, the rupiah's weakest level since March 2009. The rupiah last stood at 11,640, down 0.9 per cent for the day.
A Jakarta-based trader said foreign banks bought dollars versus the rupiah, adding that there may be some outflows from Indonesia as there was some selling of government bonds as well.
"It's a very typical risk-off move, and not just in the rupiah," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation here, referring to a broad decline in emerging Asian currencies yesterday. Reuters